Buy Back of Shares MCQ (Free) | Section 68 of Companies Act
Buy Back of Shares MCQ
1. Buy back of equity shares is permissible to the limit of ___________ in a year.
a) 30%
b) 25%
c) 10%
d) 20%
2. Amount payable on buy back cannot exceed 25% of _____________ .
a) capital, premium, reserves (shareholders fund)
b) Debt
c) none of the above
3. For calculation of limit of capital and reserve, the amount as per __________ should be considered.
a) Profit & Loss Account
b) latest Balance Sheet
c) none of the above
4. The post buy back debt–equity ratio should not exceed ____________ .
a) 02:02
b) 01:02
c) 01:01
d) 02:01
5. The buyback must be completed within _________ months from the date of resolution.
a) three
b) two
c) twelve
d) six
6. The company should open___________ Account with bank to provide fund for buy back.
a) fixed deposit
b) Saving
c) Current
d) Escrow
7. Buy back of shares can be of _____________ paid up shares.
a) fully
b) partly
c) fully subscribed
d) none of the above
8. The company issue ___________ class of shares which are subject to buy back.
a) equity share
b) preference share
c) Both a & b
d) none of the above
9. Capital redemption reserve is to be created to the extent of ___________ .
a) face value of shares
b) Market Value
c) none of the above
10. Security premium can be __________ for calculating limit.
a) included
b) Excluded
c) none of the above
| Answers: 1)25% 2)capital, premium, reserves (shareholders fund) 3)latest Balance Sheet 4)02:01 5)twelve 6)Escrow 7)fully 8)equity 9)face value of shares 10)included |
